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New national sourcing approach for med-tech devices for the NHS hits £100m in 2017

Wednesday 7 March 2018

NHS Supply Chain operates the HCTED programme on behalf of NHS England. Read about how the programme is progressing in this update from NHS England.

Each year NHS England spends in excess of half a billion pounds on high-cost tariff-excluded devices (HCTEDs) for patient care as part of a directly commissioned pathway of care. To get best value for patients and taxpayers, in April 2016 NHS England introduced a national approach for sourcing and ordering these products, which is expected to see savings of over £60 million freed up for use in the NHS following full migration of all NHS trusts to the new national approach.

Last year marked a significant milestone in the programme, where spend through the national sourcing system hit £100m.

“The programme is going from strength to strength and I am encouraged with the progress we are making but impatient to complete the transition to the new approach so we can realise more benefits for the NHS and provide a single ‘front door’ for industry to bring forward enhanced value for systematic national adoption.” says Peter Huskinson, National Commercial Director, Specialised Commissioning, NHS England.

Around 90 of the 125 provider trusts that provide clinical services using devices are ordering one or more of the 17 identified categories of devices through the new approach with an increasing number ordering the majority of their devices in this way. Because many hospitals have different ordering systems for different clinical services, trusts roll out the approach for each of the 17 categories in a phased way, with support to make the change from the NHS Supply Chain team.

On a technical level, this means around 1,000 combinations of device category and trusts to ensure a well-managed transition for, which the NHS is currently around a quarter of the way through.

“The continued focus and commitment of all partners – NHS hospitals, NHS England, NHS Supply Chain and Industry – is essential to complete the transition during the next year. To reflect this, we have taken steps to strengthen the programme team to support the NHS increase the pace of change,” says Peter Huskinson.

“We now have regional champions in place who are driving the programme forward across their respective regions with the support of the national NHS England Specialised Commissioning team and our delivery partner, NHS Supply Chain.” says Peter Huskinson.

According to Dr Vaughan Lewis, Medical Director, Specialised Commissioning NHS England (South) and Clinical Lead for the HCTED programme, the clinical review of the programme will help to improve value through reducing unwarranted variation between hospital trusts of the use of the current expansive catalogue of devices and through improved matching of device type to clinical need, while the development of ‘MedTechScan’ in collaboration with NICE will enable more rapid adoption of new, innovative medical devices for patients.

“Adopting the national sourcing approach is an important factor for providers as we work with them to develop procurement in the NHS and deliver large scale benefits and savings. NHS Improvement is working closely with NHS England and Department of Health and Social Care (DHSC) to ensure good progress” says Paul West, Director of Corporate Services and Procurement, NHS Improvement, who oversees the Nationally Contracted Products (NCP) national sourcing programme for trusts.

Completing the rollout later this year aligns well with the wider Procurement Transformation Programme (PTP) overseen by the DHSC for all procured goods and services for the NHS which is implementing a national sourcing approach as the Future Operating Model (FOM) for the NHS to be available for all categories of hospital spend from October 2018.

Contacts

For general enquiries on the HCTED programme, contact: ENGLAND.SpecComm-HCTED@nhs.net

For implementation and technical matters relating to migration to the new national sourcing approach, please email: implementation@supplychain.nhs.uk

For information on the Procurement Transformation Programme (PTP) please email: mari.firbank@dh.gsi.gov.uk

For information on the NHS Improvement Nationally Contracted Products (NCP) programme, please email: nhsi.procprogramme@nhs.net

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